Ebix extends rally after India IPO clearance

Ebix

11/04/2023 20:27

** Ebix Inc's  EBIX.O  shares climb as much as 28% to $19.33
one day after saying its EbixCash Limited subsidiary received
final observation letter/clearance from Securities and Exchange
Board of India (SEBI) for proposed IPO
    ** EBIX shares hit 7-week high on Tues after finishing up
15.7% on Mon
    ** Software and e-commerce provider said it will work with
advisors on next steps leading to its listing of EbixCash on
India's NSE and BSE stock exchanges
    ** Craig-Hallum, which rates EBIX "buy", hiked PT on stock
on Tues by $15 to $50
    ** While awaiting SEBI approval for the IPO, interest rates
have spiked, "putting Ebix in a precarious position on their
$646M in debt and eating deeply into earnings," Craig-Hallum
analyst Jeff Van Rhee wrote in note
    ** "Proceeds from the IPO could go a long way toward paying
down or possibly completely eliminating the net debt position
the company sits in and dramatically change the trajectory of
earnings and the shares," he added
    ** EBIX shares last up 22.3% at $18.46 on the session and
now off ~43% over the past 12 months. Stock on Apr 5 fell to
$11.75, lowest since Mar 2020

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))